Section 79157 Of Article 3. Agricultural Water Conservation Program From California Water Code >> Division 26. >> Chapter 8. >> Article 3.

. (a) The sum of thirty-five million dollars ($35,000,000) in the account, upon appropriation by the Legislature to the department, shall be used by the department for loans to local agencies to aid in the acquisition and construction of agricultural water conservation projects, and for grants in accordance with Section 79158.
  (b) For the purposes of approving a loan under this section, the department shall determine if there will be a net saving of water as a result of each proposed project and if the project is determined by the department to be cost-effective.
  (c) A project under this article shall not receive any more than five million dollars ($5,000,000) in loan proceeds from the department.
  (d) The department shall give preference to the agencies that propose the most cost-effective projects.